IBK, Mizuho Bank of Japan Sign 30 Billion Yen Committed Line Agreement

IBK Industrial Bank announced on the 23rd that it signed a reciprocal committed line agreement worth KRW 300 billion / JPY 30 billion with Mizuho Bank at Mizuho Bank's headquarters in Tokyo, Japan on the 22nd. The signing ceremony was attended in person by President Kim Sung-tae and Mizuho Bank President Kato Masahiko.

A committed line is a contract that grants the right to receive foreign currency preferentially within an agreed limit, serving as a stable foreign currency procurement method used in emergencies such as increased financial market volatility and liquidity crunches.

With the bilateral committed line agreement in Korean won and Japanese yen with Mizuho Bank, IBK provides a limit of KRW 300 billion and receives a limit of JPY 30 billion from Mizuho Bank. The contract period is one year, and it can be extended annually upon mutual agreement at maturity.

Through this agreement, IBK has secured lines in US dollars, Australian dollars, and Japanese yen, holding committed lines equivalent to approximately USD 700 million.

President Kim said, “Through this agreement, we can secure foreign currency liquidity more stably in the international financial market, which has become more volatile due to recent instability in the Middle East, and we expect it to help support export-import transactions of small and medium-sized enterprises.”